Federal Tax Authority Strengthens Operations with 20% Increase in Transactions and AED 46 Billion Revenue in 2025
Dubai: The Federal Tax Authority (FTA) has reported substantial growth in its operations over the past year, marked by a significant rise in registration transactions. This increase is attributed to a notable surge in corporate tax registrants, alongside ongoing growth in value-added tax (VAT) and excise tax registrations. The expansion of the Authority’s services has been positively reflected in the overall volume of transactions completed across various sectors, while customer engagement has been enhanced through innovative digital channels.
The FTA’s achievements and operational results for 2025 were detailed in its annual report, which is available on its official website. The report outlines the Authority’s accomplishments across all sectors, as well as legislative, procedural, and technical tax developments that occurred during the year. These initiatives align with the FTA’s commitment to fostering creativity and innovation, driven by a comprehensive understanding of customer needs and aspirations. The Authority aims to accelerate digital transformation to build a robust smart tax system while improving the efficiency of supervisory procedures to safeguard market integrity and ensure tax fairness.
Revenue Growth
The report indicates that total tax revenues collected from VAT and excise tax reached AED 46 billion in 2025, an increase from AED 41 billion in 2024. The number of transactions processed by the tax registration department rose by over 20%, totaling approximately 1.7 million transactions. Corporate tax registration applications surpassed 245,000, while VAT registration applications reached 98,000 in 2025, along with 206 applications for excise tax registration.
In terms of tax refunds, the FTA noted that VAT refund requests from tourists amounted to about 1.7 million, while requests related to newly constructed citizens’ homes exceeded 7,000. Additionally, 289 applications were submitted by retail stores to register in the electronic system for VAT refunds for tourists.
The report highlights that the FTA’s ongoing service enhancements and commitment to meeting client expectations have resulted in increased engagement across tax knowledge support channels. The total number of transactions received through all communication channels exceeded 625,000 during the past year, reflecting a 12% increase compared to 2024. Visitors to support centers in Abu Dhabi and Dubai exceeded 21,000, marking a 10% year-on-year increase, while the average customer satisfaction rate across all communication channels reached 93%, representing a 1.5% improvement from the previous year.
Inspection Activities
The FTA continued to implement its monitoring plans in collaboration with relevant entities to protect consumer rights, combat tax evasion, and enhance tax compliance. In 2025, the Authority conducted 175,500 field inspection visits across local markets in all emirates, resulting in the seizure of 29.5 million non-compliant packs of tobacco products lacking digital tax stamps and not registered in the Authority’s electronic system. Additionally, 7.6 million non-compliant packages of other excise goods, including soft drinks, energy drinks, and sweetened beverages, were confiscated.
The report further emphasizes the FTA’s commitment to developing awareness campaigns and diversifying outreach channels to increase beneficiaries across all emirates and effectively target groups within the tax sector. A total of 210 tax awareness workshops were conducted, benefiting 122,700 participants.
Digital Transformation Initiatives
The FTA has made significant strides in its digital transformation efforts, including the expansion of artificial intelligence technologies to enhance operational efficiency, service quality, and transaction speed. The Authority’s advanced digital system facilitated the dispatch of over 65 million text messages and emails, while website visitors reached 2.6 million. Social media engagement also saw considerable growth, with 2,980 awareness posts published in 2025 and an increase of 48,280 new followers across various platforms. The Authority issued 46 press releases detailing its events, activities, and initiatives, further strengthening its media presence and digital outreach.
The FTA’s comprehensive approach to enhancing its operations, increasing customer engagement, and implementing robust compliance measures underscores its commitment to maintaining a fair and efficient tax system in the UAE.
Source: www.emirates247.com
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Published on 2026-06-29 17:01:00 • By the Editorial Desk
